Financial Performance - In 2022, the company sold 17,728 ounces of gold and 44,084 ounces of silver, with revenues from gold and silver making up 97% and 3% of total revenue, respectively[19][22]. - The company ceased active mining operations in November 2021 and does not expect significant revenues from gold and silver sales until mining operations are restarted[22]. - The company’s only operating segment is the Hycroft Mine, which accounts for 100% of revenues and production costs[20]. - The company completed a business combination transaction in May 2020, resulting in the assumption of substantial liabilities and the issuance of new senior secured notes[15][17]. Mineral Resources - As of December 31, 2022, the Hycroft Mine had measured and indicated mineral resources of 10.6 million ounces of gold and 360.7 million ounces of silver, and inferred mineral resources of 3.4 million ounces of gold and 96.1 million ounces of silver[19]. - The Hycroft Mine has significant gold and silver mineral resources, but the company has not fully developed its milling and POX operations[28]. - The company completed and filed the 2023 Hycroft Technical Report Summary, which includes an initial assessment of mineral resources utilizing milling and pressure oxidation processes[18]. - The 2023 Hycroft Technical Report Summary provides an initial assessment of mineral resources utilizing milling and pressure oxidation processes for sulfide mineralization[18]. Production and Demand - Gold production from mines increased by 1.2% in 2022, totaling approximately 3,612 metric tons, which represented about 75.9% of the global gold supply[24]. - Silver production from mines increased by approximately 2.5% in 2022, totaling approximately 843 million troy ounces, representing about 82% of the global silver supply[25]. - In 2022, gold demand was approximately 4,741 metric tons, totaling about $274.4 billion in value, with jewelry accounting for 46% of the demand[24]. - Silver demand in 2022 was approximately 1,101 million troy ounces, totaling about $26.3 billion in value, with industrial uses comprising 37% of the demand[25]. Pricing Information - Gold prices reached a high of $2,067 per ounce in 2020 and averaged $1,770 per ounce for the year, while silver prices peaked at $28.89 per ounce and averaged $20.55 per ounce[27]. - As of March 24, 2023, the afternoon fix price for gold was $1,994 per ounce and for silver was $23.17 per ounce[27]. - The average afternoon fix price for silver in 2022 was $21.71 per ounce, with a high of $26.18 and a low of $17.77[27]. - The average afternoon fix price for gold in 2023 (through March 24) was $1,884 per ounce, with a high of $1,994 and a low of $1,811[27]. Workforce and Safety - The company had approximately 74 employees as of December 31, 2022, with 64 working at the Hycroft Mine[31]. - The Total Recordable Injury Frequency Rate (TRIFR) at the Hycroft Mine was 0.00 at the end of 2022, significantly lower than the mining industry average of approximately 2.02[33]. - The company emphasizes safety as a cornerstone of its corporate culture, with mandatory safety programs in place for employees and contractors[45]. - The company has implemented health and safety policies in line with CDC and MSHA guidelines, which mitigated the impact of COVID-19 on operations[34]. Regulatory and Compliance Issues - The company is subject to various federal, state, and local regulations governing mining operations, which could affect profitability and operational costs[36]. - The company has received a notice of non-compliance regarding a historical reclamation matter and has accelerated reclamation activities to regain compliance[40]. - The company’s reclamation obligations at the Hycroft Mine are secured by surety bonds totaling $58.7 million, with $58.3 million specifically for the mine[41]. - The company has surface management surety bonds totaling $58.7 million, with $58.3 million securing the financial assurance requirements for the Hycroft Mine[41]. Market Risks - The mining industry faces uncertainties regarding title matters, which could jeopardize business operations if defects in title occur[49]. - Proposed legislation could significantly impact operational costs on unpatented mining claims and the Net Proceeds Mineral Tax paid to the State of Nevada[49]. - The company has no dependencies on its three customers for metal sales due to the liquidity of the metal markets[22].
HYCROFT MNG.HLDG.EQ. WARRT(HYMCW) - 2022 Q4 - Annual Report